Bitcoin traded near $68,000 on Tuesday as the U.S. spot ETF attracted $458 million, one of the strongest inflow days of the quarter despite the ongoing conflict with Iran, according to data maintained by SoSoValue.
These inflows suggest that institutional investors are treating Bitcoin’s recent volatility due to the war as restrained rather than systematic.
QCP Capital, a Singapore-based trading firm, said in a recent note that the liquidation of about $300 million of buys triggered by weekend headlines was “noteworthy but restrained,” and argued that positioning had already eased substantially in recent weeks.
The options market is telling a similar story, QCP writes. With daily implied volatility briefly soaring to 93% and then quickly reversing, sign traders were hedging event risk rather than preparing for a longer period of upside.
Meanwhile, U.S. spot Bitcoin ETFs added $1.1 billion for the third straight session last week, with BlackRock’s IBIT accounting for about half, according to SoSoValue data previously reported by CoinDesk.